the stochastic interpretation of the dagum personal income distribution: a tale

the stochastic interpretation of the dagum personal income distribution: a tale

;Lorenzo Fattorini;Achille Lemmi
advances in mathematical physics 2008 Vol. 66 pp. 325-329
87
fattorini2008statisticathe

Abstract

The present notes delineates the circumstances and the basic theoretical steps which led, about thirty years ago, to the derivation of the Dagum income distribution as the equilibrium distribution of a diffusion process. Most of theoretical issues of this note deal with the derivation of the stable solution for the forward Kolmogorov equation. Such a derivation has socio-economic fundaments from the contributions of Sylos Labini on social stratification.

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